BUILDING WEALTH #3 - What Is Value Investing and Why We Use It

BUILDING WEALTH #3 - What Is Value Investing and Why We Use It

We Don’t Rush In Blind.

We Size Up, We Plan, We Move With Purpose.

Same goes for investing.

At Fireground Financial, we don’t chase hype.
We don’t bet on overnight success.
And we sure as hell don’t gamble with our future.

Instead, we use a time-tested approach called value investing. The same philosophy used by legends like Warren Buffett, Charlie Munger, and Peter Lynch.

And it’s the foundation of our Fireground Fund, our transparent, real-money public portfolio that shows exactly how we invest and why.

What Is Value Investing?

At its core, value investing means this:

You buy great companies for less than they’re worth, and you hold them until their true value shows up.

Instead of chasing trends or timing the market, you focus on real businesses that:

  • Make money
  • Have strong fundamentals
  • Are misunderstood or undervalued by the market
  • Will likely grow stronger over time

You're not buying stock tickers. You’re buying ownership in real businesses.

The Firefighter-Friendly Analogy

Think of the stock market like a tool yard.

  • One day, a $600 axe is marked down to $300, even though it's the same quality.
  • Another day, that same axe is selling for $1,000 just because it’s shiny and new.

A value investor walks in, knows what it’s really worth, and waits for the right price, not the hype.

We don’t pay full price for a tool just because it’s trending.
We buy it when it’s on sale, and we use it for years.

That’s value investing.

The Principles of Value Investing

Here’s how we apply it both in the Firehouse Fund and in how we teach our community:

1. Understand What You Own

We invest in companies we understand. Brands we use, believe in, and can explain.

Examples:

  • A firefighter might own Apple, Home Depot, or Amazon
  • If you use the products, follow the business, and see how they make money, you're already ahead

2. Buy Below Intrinsic Value

Every company has a true worth (called intrinsic value) based on earnings, assets, and future potential.

We look for stocks trading below that value — like buying a $20 bill for $12.

This gives us a margin of safety if things go sideways.

3. Ignore the Noise

We don’t jump at headlines or ride emotional roller coasters.

The market goes up and down but if the company’s solid, we stay the course.

Just like a seasoned crew doesn’t panic at a tough fire, we trust the process and keep doing the work.

4. Think Long-Term

We’re not day traders. We’re owners.

Our average holding period? Years.

That’s how real wealth is built. Not flipping stocks, but letting good businesses compound your money over time.

5. Be Transparent and Intentional

That’s where the Fireground Fund comes in.

It’s our way of:

  • Putting skin in the game
  • Showing you our strategy in real time
  • Teaching by doing, not just talking

We post weekly updates, breakdowns, and explanations so you can follow along, learn, and apply it to your own investing.

What We Look for in a Stock

When we research companies for the Fireground Fund, here’s what we’re asking:

  • Does it make real money (profit)?
  • Is it growing steadily (not just hyped)?
  • Does it have low debt and strong cash flow?
  • Is it well-managed and trustworthy?
  • Can we buy it for less than it’s worth?

If we can say “yes” to most of that, it goes on our watchlist.

Why We Believe in This Approach

  • It’s slow, steady, and proven
  • It works for people with real jobs and families, not just finance pros
  • It teaches discipline, research, and patience - values we already live by on the job

Value investing gives firefighters a way to:

  • Build real wealth without chasing trends
  • Understand what they own
  • Sleep better at night knowing they have a plan

A Word About the Fireground Fund

The Fireground Fund is a real, public portfolio that we manage under the Fireground Financial brand.

We share:

  • Our weekly portfolio updates
  • Our stock picks and rationale
  • Our wins and losses, all out in the open

Why?

Because the investing world is full of noise, scams, and hype.
We wanted to build something real, transparent, and educational for firefighters, by firefighters.

We’re not financial advisors. We’re fellow firefighters showing our journey and building wealth step by step.

Final Word: Buy Ownership, Not Obligations

You’ve already traded time, sleep, and sweat for your paycheck.
Now it’s time to turn that income into ownership.

With value investing, you:

  • Own real companies
  • Focus on long-term growth
  • Avoid emotional decisions
  • Build wealth with purpose

Whether you're investing $100 or $100,000, this strategy is for you.

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